The Los Angeles Housing and Community Investment Department is a key agency overseeing housing policies and programs in Los Angeles. With LA’s hot real estate market and ever-increasing housing costs, the department plays a crucial role in providing affordable housing opportunities for LA residents. Understanding the department’s initiatives can help investors identify potential investment prospects in LA’s housing sector. This article will examine key programs and priorities of the department, and how they shape housing investment in the city.
Affordable Housing Development Programs Create Investable Projects
The Los Angeles Housing and Community Investment Department administers various affordable housing development programs that fund construction of affordable units. These include the Affordable Housing Managed Pipeline, the Permanent Supportive Housing Program, and Transit Oriented Communities Affordable Housing Incentive Program. By providing favorable financing, subsidies and other incentives, these programs enable developers to build affordable housing projects that would likely be infeasible otherwise. For investors, partnering with developers on such subsidized affordable projects can be an attractive investment strategy. The steady governmental funding sources and subsidies help reduce risk and generate stable long-term returns.
Rental Assistance Programs Expand the Rental Housing Market
The department also runs rental assistance initiatives like the Section 8 Housing Choice Voucher Program. These programs provide rent subsidies to low-income tenants, allowing them to afford market-rate units. For investors, this expands the pool of financially qualified tenants. Investors can potentially charge higher rents on units leased to voucher holders, while the government subsidy protects the tenant from rent burden. This presents a win-win scenario enabling investors to profit while still providing affordable housing.
Housing Code Enforcement Creates Rehab and Redevelopment Opportunities
Through its Housing Code Enforcement program, the department inspects properties and requires landlords to fix code violations. For severely dilapidated properties, this can lead owners to rehabilitate or redevelop them, presenting opportunities for investors to acquire distressed assets primed for turnaround plays. The department also runs the Rent Escrow Account Program, which incentivizes landlords to quickly make repairs by rerouting tenant rent payments into escrow accounts until violations are fixed.
First Source Hiring Connects Developers with Local Workers
The department’s First Source Hiring program links affordable housing developers, contractors and employers with local ready-to-work applicants. This allows investors undertaking department-supported projects to tap into a pool of job-ready local workers and trainees to help meet workforce requirements. It builds goodwill through local job creation while giving investors access to an expanded labor pool.
From affordable housing development incentives, to rental assistance programs, code enforcement and job linking initiatives, the Los Angeles Housing and Community Investment Department’s diverse efforts shape the city’s housing landscape in many ways. Savvy investors can capitalize on the investment opportunities created by the department’s programs and priorities.